UNIT-I Introduction to Computer ‘Computer: ‘Computerisan electronicmachine which takes data.as inputand produce outputthrough set of programs. Itisa combination of hardware and software, The machines hardware andthe dataand instructionsare software. Mass Storage Devices History of computer: Computerwas invented by Charles Babbage between 1833.and 1871. He is alsoknown as Father of Computer. Generations of Computer: Sr.No, Generation and Description First Generation 2 ‘The period of first generation: 1946-1959. Vacuum tube based. 5 Second Generation ‘The period of secondgeneration: 1959-1965. Transistorbased. - ‘Third Generation ‘The period of third generation; 1965-1971. Integrated Circuitbased. A Fourth Generation ‘The period of fourth generation: 1971-1980. VLSI microprocessor based. ie FifthGeneration ‘The period of fifth generation: 1980-onwards. ULSI microprocessor based‘Components of computer: ‘There are followingcompenentsof computer. CPU (Cental Processing Unit) Motherboard Processor Memory (RAM) Case/chassis Powersupply Floppydrive Hard disk ‘CD-ROM, CD-RW, or DVD-ROM drive Keyboard Mouse Video card Monitor (display) Sound card Speakers Modem ‘Central Processing Unit (CPU): ‘TheCPU (Central Processing Unit] isthe part of a computer system that is commonly referred toas the “brains” of a computer. The CPU isalso knownas the processor or micraprocessor. The CPU is responsible forexecutinga sequence of stored instructions called a program. This pragram will take inputs from an input device, process the Inputin some way and outputthe results toan output device. ‘CPU itself has following three components Memoryor Storage Unit © Control Unit ‘© AUU(ArithmeticLogicUnit)Computer refers to mainly two major elements which are as following: 1. Hardware 2. Software Hardware: Allphysical devices usedin computer which we can see and touch are knownas hardware. Forexample like monitor, mouse, keyboard etc Computers are connected with two types of devices: 1. InputDevices 2. Output Devices Input Devices: Those devices which are used for giving insteuetions in form of data to computers are known as input Devices. Some of input devices areas following: 1. Keyboard: 2. Mouse:3. Scanner: 4, Microphone: 5. Touchscreen: 6, Light Pen: 2 mn C/Output Devices: Devicesused to display the resultsorinformation are knownas Output Devices.Some of outputdevices are as follow 1. Monitor: 2. Printer: 3. Speaker:Software: Software isa colle ‘of hardware. 18 of data ar compuiterinstructi ons which tells the computerhowto work the help © SystemSoftware © ApplicationSoftware ‘Systems software ‘The systemsoftwareis collection of programs designedto operate, control, and extend the processing capabilities of the computeritself, System software are generally prepared by computer manufactures. These software products camprise of programs written inlow-level languages which Interact with the hardware at a very basic level. System software servesasthe interface between hardware and theend users, ‘The most basic types of system software are: 1..BIOS and device firmware— they provide basic functionalityto operate and control the hardware connected to or bulltinta the computer. 2. Operating System— IT allowsthe parts of a computer to worktogetherby performing taskslike transferring databetween memory and disks or rendering output ontaa display device. Italso provides aplatform torun high-level system software and application software. 3. Utility software It helps in analyzing, co turing, optimizing and maintainingthe compute Application Software Anplication software products are designed to satisfy a particularneedof a particular environment. Allsoftware applications prepared inthe computerlab can come under the category of Application software. Application software may consist af asingle program, suchas a Micrasaf’s natepad forwritingand ‘editing simpletext, It may alsaconsistofa collection of programs, often called asoftware package, ‘which work together to accomplish a task, such as a spreadsheet package Examples of Application softwareare following © Payroll Software ‘* Student Record Software ‘© Inventory Management Software + Income Tax Software ‘+ Railways Reservation Software '* Microsoft Office Suite Software * Microsoft Word + Microsoft Excel+ Microsoft PowerPoint Programming Languages A vacabulaty and set of grammatical rules forinstructing a computer to perform specifictasks, The term programminglanguage usually refersto high-level languages, such as BASIC, C, C+, COBOL, FORTRAN, Ada, and Pascal. Each language hasa unique set of keywords (words that itunderstands) and a special syntax for arganizing programinstructions. ‘Concept of Data processing Data processing, Manipulation of data by a computer. Itinludes the conversion of rawdata to machine-teadableform, flow of data through the CPU and memory to autputidevices, and formatting or transformation of output. Any use of computers to perform defined operationson data can be Included under data processing, Inthe commercial world, data processing refers tothe (processing of data requiredto run organizations and businesses, Stages of the Data Processing Cycle 1) Collection is the first stage of the cycle, andis very crucial, since the quality of data collected wi impactheavilyonthe output The collection processneeds to ensure thatthe datagathered ar both defined and accurate, sothat subsequent decisions basedonthe findings are valid. This, stage pravides bath the baselineframwhichtomeasure, and atarget on whatto improve, Same types of data collection include census, samples urvey, and administrative by-praduct, 2) Preparation isthe manipulation of dataintaa form suitable forfurtheranalysis and processing, Raw data cannot be processed and mustbe checked foraccuracy. Prepgration/sabout constructinga dataset fromoneor more data sources tabe used forfurtherexploration and processing, Analyzing data that has not been carefully screened for problems can produce highly misleading results that are heavily dependent on the quality of dataprepared. 3) Input is the task where verified data is coded or converted into machine readable form sothat it can be processed through acormputer. Data entry is done through the use of a keyboard, digitizer, scanner, ar data entry froman existing source. This time-consuming process requires speed and accuracy. Most data need to follow aformal and strict syntax since agreat deal of processing powers requiredto breakdown the complexdataat this stage. Due to the costs, many businesses are resorting to outsource this stage. 4) Processingis whenthe datais subjected tavarious meansand methods of manipulation, the point wherea computer program is beingexecuted, andit contains the pragram code andits currentactivity. The process may be made up of multiple threads of execution that simultaneously execute instructions, depending an the operating system, While a computer programs a passive collection of instructions, a processis the actual execution of those instructions. Many software programs.re available torprocessing large volumesot data within very short petiods.5) Output and interpretations the stage where processed informations now transmitted to the user. Outputs presented to usersin various report formats ike printed report, audio, video, aron monitor. Qutput need to be interpreted sothat itean provide meaningful information that will Buide future decisions of the company, 6) Storage is the last stage in the data processing cycle, where data, instruction and information are held for future use, The importance of this cycles that it allows quick access and retrieval of the processed information, allowing itto be passed an to the next stage directly, when needed. Every computer uses storage to hold! systemand application software. ‘Applications of LECT IECT or Inforrnation, Electronics and Communication Technology is used in various sectors. IECTcan be used to generate quality manpower, Example of somie of the sectors is given below. E-governance Governance réfersto the exercise of political, economicand administrative authorityin the managementof a country’saffairs, including citizens articulation of their interests and exercise of thelrlegalfightsand obligations. E-administration — It rofers to improving government processes and the internal working of public sectorwith new ICT-executed information processes. E-services~ it refers toimproved delivery of publicservices tocitizens. Someexamples of Interactive services are ~requests for publicdocuments, requests forlegal cocumentsand Certificates, issuing permits and licenses. E-demacracy— It implies greaterand more active citizen participation andinvolvement enabled by ICTs in the decision-makingpracess, Multimedia and Entertainment In taday'selectroniceracomputers have invaded almost every fieldof aurlife andentertainmentisno exception. Withadvancementin computer hardware and widespread reach of Internet, computer has become @ useful teal in entertainment. Using computer, youcan|isten tomusic, watch movies and DVDs, play games.and even hook upyourcable connection. Allthishas been possible due to advancement inmultimedia concept of computers and accompanying progress in computerhardware. Multimediaisacombination of pictures, alidio, video, animation, and text forimpravingcontent displayed by the computer. Eg, using Microsoft Windows XP Media Center Edition, youcan run alriost anything (DVO, MP3, iPad, home theatre system, ete.) youwantusing yourcomputerasthe hub.UNIT-II Introduction to Operating System Introduction to operating system ‘An operating system isa System software which performsatl required task to run a computer and manages all processes of a system. The operatingsystem provides aninterface between an application program and the computer hardware. Common desktop operating systems: 1 Windows 2. Linux / UNIX 3.Mae Functions performed by operating systems: |. Processor management — Assignmentof processorto different tasks being performed by the computersystem. 2. Memory management ~ Allocationof main memory and otherstorage areas to the system programsas well as user programs and data. 3. Input/output management Co-ordination andassignment ofthe different outputand input devices whileone or more programs are being executed. 4. File management Storage of files of various storagedevices. Italsoallaws allfles tobe easily changed and modified through the use of text editors or some other files manipulation routines. 5. Prioritization Establishment and enfarcement ofa priority system. That is,the OS determines and maintains the sche duleinwhich jobs aré to be executed inthe computersystem, 6 Automatic transition from one job to anotherjob as directed by special control statements. 7. Interpretationof commandsandinstructions 8 Resource Allocation— Coordination and assignment of compilers, assemblers, utility programs, and other software to the various usersof the computer system. Fagilities easy communication between the computersystem andthe computeroperatar {human),Italsoestablishes data security and integrity. User Interface in Operating System: Graphical User Interface has a visual environment using windows, buttons, andicans. As Microsoft Windows aperating systemis the mast popular, we will discuss the different features of a GUI based operating systemswith the help of Windows operating system. Interface may be one the following type: 1, Graphical User interface (GUI): Graphical based operating systems provide GUIto interact with computer, Graphical lconsare provided on the screen, With the help of variousinput devices theseicons can be usedto quickly give instructions te computer andalso te start various programs. Microsoft Windows, Macintosh ete, are popularexamples of Graphical User interface Operating Systems. sed GUI Graphical User Interface Command Line Interface ‘A.commaniline operating system pravides a command prompt on the computerscreen. The commandsare givento the computer by typing.on the keyboard, The commands are typed according to the predefined format. The users have tamemorizecommands and rules of writing these commands. Itisnot an easy way to interface with the computer. MS DOS and LINUX provide text based interface to pascinstruction tocomputer. 10‘There are followinguserinterfaces in operating system. > Task Bar Icons > Runningan ApplicationSettings of an operating system: Benen we e- se aes Be Pete Bena Changing Display Properties To Addor Remove aWindows Component Changing Mouse Properti Addingand removing Printers vy File and Directory Management ‘With the click of mouse buttanusercan create, delete, and rename afile orfalder. Folderscan be shared so that these are used by others. Moving. file is simple drag and drap operationof mouse in ‘Windows Explorer. Forthe text processing requirements ofthe users Notepad and Word Pad are given. Utilities like Games and multimedia can be usedto entertain the users. System performance can be increased with systemtool In Windows Exploreror my computer, one can see both hierarchy of folders onthe computersand all the files and foldersineach selected folder. Thisisespecially useful forcopying and movingfiles Creating and Renaming of Files and Directories A file object provides representation of 3 resource that can be managed by the |/O system. Like other objects, they enable sharing of the resources, theyhave names, theyare protected by abject- based security, and theysupportsynchronization, The I/O system alsoena bles reading fromor writing to the resouree. A directory isa hierarchical collection of directories andfiles. The only constraintonthe number af files thatcan be containedina single directory isthe physical size ofthe disk onwhich the directory islocated. 2Creating new files or folders Follow these stepsto create new folders: 1. Open Windows Explorer, navigate to the drive arfalderin which youwantto create your new folder, 2. Rightclick anywhere in the white space and hover the mouse overnew. 3. Clickon falderfromthe sub-menu thatappears 4, You will then be prompted to name the folder, simply typeinthe name andthen press enter (return) key. ‘The same procedure maybe followed farcreating files. Renamingfilesand folders Follow these stepsto rename files and folders: 1. Right click on the folderor file which you wanttorename. 2. Thenlickon the sub-menu Rename 3. Filename gets highlighted. Write the name of the file orfolder youwant and press Enter.UNIT V INTRODUCTION TO INTERNET, WWW AND WEB BROWSERS Internet ‘The Internet can be defined asa network of globally connected computersthatis decentralized by design, Anetwork is a collection of inter-connected computers, The Intemet canalso be referred ta ‘a5 a network because it sa collection of millionsof computers, These computers may be situatedin any part of the world. Whenwe say that the Internethas a decentralized design, we mean that there is no centralized body that controls the way inwhich the Intemet functions, Each computer connected tothe Intemetis called ahost, The operator/ userof a particularhostcan choose from the millions of available Internet services and canalso make services availablethroughthe Intemet, Basics of Computer Network ‘Anetwork ismade of two ar more computers connected toeach other. Depending on the sizeof the network, i.e. the numberof computers connected and the average distance between them, there can be twotypes af network: 1. Local Area Network (LAN) 2. Wide Area Network(WAN) Local Area Network (LAN) Itconnects network devices over a relatively short distance like in a single building or campus. LANS are typicallyowned, contralled and managed bya single personand organization. Wide Area Network (WAN) ‘A. WAN provides tong distance transmission of data, voice, image and video information over large geographical areasthat may comprisea country, continent, oreven the whole world. TCP/IP Protocol Layers Like most networking software, TCP/IP is madeled in layers. This layered representation|eads tothe term protocol stack, which refers to the stack of layersin the protocol suite, By dividing the communication software into layers, the pratocol stackallaws in ease af implementation andcode testing, and the ability tadevelopalternative layerimplementations. Layerscommunicate with those above and below via concise interfaces. In this regard, alayer providesaservice for thelayer directly aboveit and makes use of services providedby the layer directly belowit. These layers include: 26‘Application Layer: The applicationlayerisprovided by the program that use s TCP/IP for communication. An application is auser process cooperating with another process usually ona different host. Examples of applications include Telnet and the File Transfer Protocol (FTP). ‘Transport Layer: The transport layer providesend-ta-end datatransferby deliveringdata from an, applicationto its remote peer. Multiple applications can be supported simultaneously. The most used transport layer protocol is the Transmission Control Protocol (TCP), which provides cannection- oriented reliable datadelivery. internetworkLayer: ‘The internetwork|ayer, alsocalled the internet layer arthe network layer, provides the “virtual network*image of an internet (thislayershieldsthe higherlevelsfromthe Physical network}. Internet Protocol IP) is the mast important protocol inthistayer. IP provides a routing function that attemptstodelive transmitted messages tatheirdestination. Amessage unit Jinan IP networkis called anIP datagram, Thisis the basic unit of information transmitted across TCP/IP networks, ‘Network Interface Layer: The networkinterface layer, alsocalled the linklayer ar the data-link layer, isthe interface to the actual network hardware. Infaet, TCP/IP daesnat specify any protocol here, butcan use almost any network interface available. Applications of Internet Internet enables us taconnect to different types of informationnetworksand exchange information. Some of the applications of internet are: Communication via e-mail, chatand instant Messaging (IM) tools Research Job Searches Shopping Entertainment ‘Tutorials and study materials © Business Development EyConnecting to the Internet To connectto the internet, you must have access to the followingresources: 1. Computer System —A Processorwith 400 MH? or fasterspeed isrecommended, With Windows 95/98 at least 48 MB of RAM and more will helpinerease the computer'sspeedforfaster Internet cruising. A Sound Cardand Speakers also are recommended so one canhear the audio information on the Internet, 2. Modem Computer andother electronic devices work with digitalsignal whilethe cable used For networking usesanalog signal. Mademconverts digital signalto analogandvvige versa 3: InternetService Pravider (ISP) ~ ISPs are organizations thatallow userstadialintoISP computers (fora fee) to connect to the ISF’s internet link. SPs generallyprovidean Internet connectionandan-e-mail address. 4. Software —The software ar application needed toaccessinteiet iscalled web browser or Internet browser. Troubleshooting Losing accessto ane’s e-mail and favorite Web sites.can be as frustratingas picking up adead telephonereceiver. Although the problem may lie withthe ISP, it's worth knowing how to troubleshaot user's awn end af the line, too. Instructions. 1. Make sure that the cable is correctly connected tabotha phone line and user sraodem and that, when userisusinganextenal modem, it’s connected to the PC. 2. modem isiriternal, skipthis step. Unplug the power cord from rhadem and shut down user's computer. Plug the modem backin and restart the computer. Connection Refusal by ISP 1. Make sure regarding that username and passwordare correct. These are usuallyentered through connection program provided by the SP. 2, Checkwhether the host nameanddamain name information are correctly entered in the TCPAP settings, This information willbe supplied by SP. Problems in Loading WebPages or Sending £-mail 1. Call 1S#’s support number to find outif the user hasbeen atfeeted bya service outage. 2. Unplugthe power from modem for at least 19 seconds, shut downthe computer, plug the modem hack in and restartthe computer. Basics of Internet Architecture: ‘The internetarchitecture can be broadly classified into three layers. The very firstlayer consists.of Internet Backbones and very high speed networklines, The National Science Foundation (NSF) created the first high-speed backbone in 1987 called NSFNET, it was a T1 line thatconnected 170 smaller networks together and operated at 1.44 Mbps {millicn bits per second). IRM, MICI andMerit worked with NSF te create the backbone and developed aT3 (45Mibps) backbone the following year, Backbones are typically fiber optictrunk lines. The trunk line has multiple fiberoptic cables combined together toincrease the capacity. Fiberopticcablesare designated OC-48can transmit 2,488 Mbps (2.488 Gbps). The nodesare known as Network Access Point (NAPs), The second layeris usually knownas internet Service Provider (ISP), The ISPs are connected tothe Backbones at NAP’swith high speed lines, ‘The end users which are part of thirdlayerare cannecte dto ISPs by diat up or leased linesand modems. The speed of communication s usually 1400 bps to 2048 kbps. Inthe real Internet, dozens of large Intemet providers intercennect at NAPsin various cities, and trillions of bytesof data flow between the individual networks at these points The internetis a collection of huge corporate networks interconnected with one otherat the NAPs, backbones and routers to talkto each other. Amessage can leave one computer and travel halfway across the ‘world through several different networks and arrive atanothercomputer ina fractionof a second. ‘The routers determine whereto send information from one computertoanather. Routers are specialized computers that send messages to their destinations alongthousands of pathways. It joins twonetworks, passing information fromone to the other. Services on Internet © WiW (World Wide web) ‘+ Electronic hail4€-mail) FTP (File Transfer Protacol) IRC (Internet Relay Chat) Telnet Voice / Video Communication - Skype Social networks Search Engines Web-Hosting(DATACENTER) World Wide Weband Websites It integrates all the information framthe Inte metin one big web. Itisthe most user-friendly service, Itisthe mast user-friendly service, Itallaws connecting to any camnputerhavinginformation. It offersthe capabitity tolinks with sites. Web Servers are software thatrun on the Internet servers ‘and provideinfarmation tothe Web users and ather servers. Internet servers store information on the Internetare eitherservers orclients, The machines thatprovideservices toothermachinesare servers, The machines that are usedto connectto those servicesare clients, There are Web servers, ‘e-mail servers, FIP serversetc. serving the needs of Internetusers all overthe world. 9‘Theinformation on theweb serveriscompiledin Hyper Text Markup Language (HTML), It hasuseful textand images linked todifferent documents. HTML provides 2-effect. Butto have 3-0 effect of the imagesand to have soundetfectete., Virtual Reality Modeling Language ( VRML) can beused very efficiently. Web browserissoftware, which provides intertaceto WWW. This software runson user’smachine. Web browser is availablein two formats: Graphical formatand Text format. Once a dlienthas cannected to. service on a particularport, it accesses the service usinga specific protocol. Protocals are rulesthat describe how the client and server will have their conversation. Every Web serveronthe Internet conformstothe Hypertext Transfer Protocol (HTTP). Communication on Internet: Communication is the most popularuse of the Internet, with emailtopping the listof al the technologies used. Some of the types of communication technologies used alsoinclude email discussion groups, Usenet news, chat groups, and IRC. Theseare unique to networked computer ‘environments and have come into wide popularity because of the intemet. Other technologies, including videoand audio conferencing and internet telephony, areaiso availableonthe intemet. They require more multimedia capabilities of computersystems and are more taxingof network resources than the others. Theyalsoare adaptations of other technologtes tothe Internet. ¢wv = &B °°. He a ES & ‘Most of the technologies that are unique tothe Internet require communication tobe done in text—Ietters with somesymbolsand punctuation. Communicating effectively involves takingthe time, exceptininformal communications, to use correct grammar, spelling, and punctuation and writing an appropriate message. Whenreplying toa message include the pertinent partsof the ‘message and use an apprapriate and interesting subject headerinany case.When you're cormmunicating on the Internet take specialcare not ta give aut personal information to strangers and to treat others with respect. Be aware of the risks involved in communicating with people youcannotsee and may nevermeet in person. Take time toconsider what you writeto others, andbe carefulto avaid humor and sarcasm except with the bestof friends, Youcan’tassume that yourmessages are private, so be careful about what you write Several issuesrelatedto.thical and egal onsiderationsarise fromusingthe Internetfor communication. The manner in which communicationisimplemented on the Internet makesit susceptible to monitoring. Youcan'tassume that communications are private. Some believe that ‘sending email is like sendinga message ona postcard. Some laws have been enacted tohelp protect privacyduringelectraniccommmunications. These, however, have been difficulttoenforce andare rarely applied. One way taprotect privacy is to encrypt or code a message. A common way of ‘encrypting messages is through the use of publicand private keys. Although oftware forencryption isreadily available, current policiesandilaws prohibitits export. Another areaof concer is dealing with abusive or offensive communications. Laws thatapply to {ibel, harassment, and abuse have been applied to cases where the offendingbehaviorhas occurred ‘on the Internet. Unsolicited email or other forms of communication is called spam. Itdefinitely isan ‘annoyance, but also quite castly tothe people whoreceive the junk email or ethercommunications. It’s relatively inexpensiveto produce, because most of the cost of transporting the e mail is shifted to the receiverandall people that use the networks supportingthe internet. Internet Services ‘Typesof Internet Services World Wide web: WWW is a graphical hypertext way of usingthe Internetusing the HTTP protocol for transmitting, Web pagesand other information overthe Internet in principle, between the serverand the user's computer, Web pagesare writtenin HTML (Hypertext Markup Language) language, and recognizes them for this purpose designed browser (Internet Explorer, Firefox...) Telnet: The TeInet Terminal Emulation’ software support, which tacommunicate withacomputer connected viaa TCP / IPstack. Electronic Mail: The ideathatin a fewminutes yau can deliver, text, image, audio orvideo recording of any personon the planet was unfeasible until recently, but now, thanks largely to the rapid ‘expansion of the numberof Internet usersand the increasing speed of communication, was te become reality of business and social communicatiar aLFIP - File Transter Protocol Before the World Wide Web and FTP was the only way to transferlarge files between computers of Internet users, Allows.access to a computeron the Intemet ifit's public aravailable tothe password), preview contenton itshard disk, findingthe necessary files and copyonits owndisk. Chat: ‘Thisservice allowsthe Intemet toone or more of Internet users who are hooked to the same. channelat thesame timesee the text thatyou type on your computer, andthe textsof otheractive ‘users typingon his computer. Social networks Social networks are a newerphenomenon anddo not belangin a separate category because they contain almost all of the previously mentioned services, unified toworkinan easy, friendly way. Proparing Computer for internet Access Requirements to make yourcamputera partof the internet- Internetconnection Modem Telephone line Program which controls the communication of dataoverthe hardware component. a2ISPs and examples(Broadband/Dialup/WiFi) An internet service provider (ISP) is an organization that provides services for accessing, using, or Participating in the Internet. Internet service providers maybe organized in variousforms, suchas commercial, community-owned, non-profit, orotherwise privately owned. Internet services typically provided by ISPsinelude Intemet access, Intemet transit, domain nam ration, webhosting, Usenet service, and colocation Some of the ISP'sare: + VSNL(Videsh Sanchar Nigam Limited) ‘+ MINL(Mahanagar Telephone Nigam limited) © Mantra Online © Satyam * Tata-indicom el Choosingan Intemet service Dial-up: Dial-up is generally the slowest type of Inte met connection, and youshould probably avoid itunless itis the only service available inyourarea. Like a phone call, adial-upmodem will connect youto the Internet by dialinganumber, and it will disconnect when you are done surfingthe Web. Unless you have multiple phone lines, you will notbeable touse yourland line and the Internet at the same time with adial-upconnection. DSL: DSL serviceuses abroadband cannection, which makesit much faster than dial-up, However, it isunavailable in many locations, soyou'llneed to contact your local ISP for information about your ‘rea. DSL connectsto the Intemet via phonelline but doe snot require you tahave aland line at home. Unlike dial-up, it will always be on once its set up, and youll be able to use the Internetand your phone line simultaneously. 3G and 4G: 3G and 4G service ismost commonly used with mobile phonesand tablet computers, and itconnects wirelessly thraugh yourISP’s network. If you have adevice that's36 or 4G enabled, you'll be able to use it to access the Internet away fromhome, even whenthereisno Wi-Fi connection, However, yaumay have to pay per device to use.a 36 ar 4G connection, andit may not beas fast as DSL or cable, Wireless Network ‘A homenetwork canbe wired (using Ethemet cables) orwireless using Wi-Fi)-Itmayalsobea mixture of the two, with some devices connecting with Ethernet and othersconnecting wirelessly. Internet Access Techniques ‘There are several ways of connectingto the Intemet, We candivide the methodsintotwomain types- Fixed and Mobile. aHome Internet Fixed accessis usually much fasterand reliable than mobile andis used forconnecting homes/offices. The main Access mechanisms are: * ADSL overtraditional Phone Lines(mast common). ‘© Cable (limited tocable TV areas) ‘© Fiber broadband Currently being Rolledout ‘Mobile intemet \Whentravelling away from the fixed location mobile accessisused. The main access mechanisms an Mobile broadband over3G Network {common butstow) ora + Public/ Private Wii-Fl (common) Popular Web Browsing Software a freeware webbrowserdeveloped by Google. Itused the WebKit avout engine until version 27and with the exception ofitsiOS releases, from version 28 and beyond uses the Webkit fork Blink, NCSA Mosaic Mosaic was the first full-color graphical browser and'was instrumental in making the web aspopular asit istoday. Masaicwas develaped by NCSAat the University of Ilinois, with several supported commercial versionsavailable from companiessuchas Spry and Spyglass. NCSA Mosaics free for personal use and camesin versions for Windows, Macintosh and UNIX. Each version is called WinMosaic, MacMosaic and Xmosaic respectively, Netscape Navigator Itisalso knownas Netscape andis available for Windows, Macintosh, and for many different versions of UNIX running the X windows system. itis well supported and provides upto the minute features including anintegrated newsand mail reader, support for lave applets, and the ability to handle "plug-ins" for more new and interesting features yet tobe developed. Microsoft internet Explorer Microsoft internet Explorer (IE) enables you toconnect tothe internet togain accessto the vast stores of information on these computers. Subscribe to your favorite sites sothat the content is ‘automatically updated whenever you want-daily, weekly or monthly. internet Explorercan ownload updated Web Pagesor entire sites in the background while youdaother work on your computer. Youcan adda Web page to your listof favorites for easy access from the Favorite menu or Explorer bar. With Auto Complete, when you start typinga frequently used URLin the Address bar, internet Explorercompletes the address for you. Using security zones, youcan set different levelsof security fordifferentareas of the Web to protect your computer. WithContent Advisor, youcan screen outobjectionable or offensivecontent. Eis available free.Mozilla Firefox Itisa fast, full-featured web browser that makes browsingvery efficient. Firefoxincludes pop-up blocking, tab browsing, integrated googlesearching and simplified privacy controls that let you coveryour tracks mare effectively. streamlined brawserwindow shows you mare of the page than any other browser. This s also available free, Opera Mini Opera Miniis a web browserdesigned primarily formobile phones, smartphones and personal digital assistants. Until version 4 itused the Java ME platform, requiring the mabile device to run Java ME applications. From version Sit is also available asa native application for Android, iOS, Symbian OS,and Windows Mobile. Opera Miniisoffered {reeof charge, supported mainly through deals with mobile operators tehave Opera Mini pre-installed in phones, and othersources of revenue suchas search advertising deals, licensing and paid bookmarks and Speed Dial placement, Configuring Web Browser Configuring Your Web Browser'to Allow Pop-up Windows Most web browsersinclude afeature to block pop-up windows. While this may eliminate unwantedor bothersome pop-up windows, the feature sometimes canimpede the functionality of legitimate or useful websites. Chrome {Windows/OSX) 1. OpenChrame, then gato the web page that you want to allow pop-ups. 2. In Chrome’s URL window, highlight the entirewebaddress of the current page, then choose the Copy command fromthe Edit menu. 3. Click thewrench icon on the browser toolbar. 4 SelectSettings. 5. Click Showadvanced settings. 6. _ Inthe Privacy ection, click Content settings. The Content settings window appears, 7. Inthe Pop-upssection, clickManage exceptions. Enable Java in web browser Chrome Enter about: plugins in thesearch field. In the Plug-instlist, look for Java and check whether Java isenabled (if the Disable link appears, Java isalready enabled) Clickon the Enable link (if available) (Optional) Check the Always allowed box to stop additional Chrome warnings when running Java content Search Engine ‘Asearch engine is a program which looks through its database for information that matches your request. Informationin the database are about websites andtheircontents. Examples of search 45,enginesare Googie, Alta Vista, Yahoo Search, Bing, MSN, HotBot, ete, The effectiveness of search engine can be measured by twa main parameters: ‘# Exhaustive indexing © Specificterms Indexingis the processing of adocument re presentation by assigning content descriptions.or terms to thedacument. In Indexing the web documents are characterized by recall (ratloof the numberof relevant documents retrieved to the total numberof documents retrieved). Automaticindexing inéludes single term indexing, statistical methods, as well asinformation theoretical and probabilisticmethads. in addition to this automatic, indexing usestinguistic and multi-term ar phrase indexing. Since the Internetisa vast collection of information, its difficult to find spe cific information youactually need. Therefore, the search feature in awel browser suchas the Intemet Expiorerprovidesaneasy access toa special facilitycalied search engine. Search engines scan the Internet forthe words or topics you are looking for; Webcrawleris.a program that crawls through the weband callectsinformation regarding the websites. This information's put into the database of asearchengine Popular Search Engines/Search for eantent ‘Thereare manysearch engines available onthe web, Mostof the search engines providewebsite reviewsandhomepage services, inadditionte key-wordsearches. Some of the popularsearch ‘enginesare: Google Yahoo! AltaVista MSN ‘Accessing Web Growser To access a web browser, youneed todo the following: ‘+ Install web browsersoftware like Internet Explorer, Mozilla Firefoxonany otherin your machine. Double click the browser icon toopen the web browser, Provide anaddress of a page which youwantto see in the address barand press Enter Using Favorites Folder Ifyou wantto save a webpage thatyouwantto come back to later, youcan add itto “Favorites” foltier. It'sa great system for organizing yoursearch efforts in manageable folders. Follow these steps to create a favorite in internet Explorer: ‘© Whenyouare an a webpage yau want to save, dick dn the “Favarites"icon in the internet Eeplofertoolbar = You'll see eitheradrop down menuora side screen windaw pop up. + SelectAddte Favorites toopen the Add Favorites dialog box.+ Change the filename and/or foldername asyou wantand click OK, Downloading WebPages ‘To downloadaweb page you need todo the followi '* Click Tools File Save As to open the Save Webpage dialogbox. © Enter the location where you want tasave the page and namewith which you wantto save + ClickSave to save the webpage. PrintingWebPages ‘To printa webpage youneedto do the following: ‘* Click ToolsPrintto open the Print dialog box. '* Choose your options (especially All/Selection/Pages aptionisimportant), set print preferences and click print. aUNIT VI COMMUNICATION AND COLLABORATION Basies of Email Email, or electronicmail,is aquick way to sendand receive messages. And many peopleeven choose to receive theirmonthiy bills and bank statements electronically, nsteadof through the mail. What is Email? Email stands for electronic mail, Itconsistsof two components —headerand body. The message headercontains control information, including, sender's email address andone or more recipient addresses, Uswally additionalinformationis added, such asa subject headerfield, internet e-mail messages consist of follawingtwomiajorsections: ‘© Header — It has many componentslike summary, sender, receiver, nd other information about the e-mail, Some af the components are: ‘© From: The e-mail address, and optionally the name of the author(s). In manye-maillient settingisnot changeable except through changingaccountsettings. © To: The e-mail addresses, and optionally name(s) of the message's recipient(s). Indicates Primary recipients, © Bee: Blind Carbon Copy; addresses.added tothe SMTP delivery list butnot (usually) listedinthe message data, remaining invisibleto other recipients. ‘© Ce:Carbon copy; many e-mail clients will mark e-mailin yourinbox differently dependingon whether youare inthe To: or Cc: list. © Subje brief summary of the topicof the message. Certain abbreviations are commonly used inthe subject, including "RE:" and "FW:" * Body — The message itself is unstructured text; sometimes containingasignature block at the end. This s exactly the same as the bady of a regularletter. Email address: Email addresses use astandard formula, They are always separated into two parts by the @ symbol. The first part of the email addressusually identifies youin some way. You might have your real name forthe first part of your email address, or you coulduse a handle ora nickname that your friends and family willrecognize. The second part of an email address ususllycomes from your webmail provideror the internet service pravider you use. If you're emailing someone and they, or theirbusiness has awebsite, you'llsee thatthe second partof theiremall address uses part of their website address, ‘Thisgivesa standard formula forall email addresses which will look something like [email protected] [email protected] Benefits of Using E-mail E-mail has following benefits: ‘© Easy tose: &-mailhelpsusto manage our contacts, send mails quickly, andmaintain our mail history. 4aTo see thumbnails of additional themes, click the arrows hexttothe row of thumbnalls. ane Unless you specify otherwise, Office PowerPoint applies themes to the entire presentation. To change the appearance of only selected slides, onthe Slides tab, pressand hold CTAL while yauclick each slide that youwant to change. When al of the lidesare selected, right-click the theme that youwent to apply to them, and then click Apply to SelectedSlides on the shortcut menu, Convertslide text to a SmartArt graphic ‘A SmartArt graphic isa visual representation of yourinformation that youcan fully customize. Convertingyourtexttoa SmartArt graphicisa quick wayto convert existing slides to professionally designedillustrations. For example, with ane click, you can convert an Agendaslide toa SmartArt graphic, Agenda = nce “eamerrmeets + adearesin Agenda eeshoneen You can choose frommany built-inlayouts to communicate yourmessage orideas effectively. Toconvert existing texto a SmartArt graphic: 1. Click the placeholder that contains the text that you want to convert, 2. Onthe Home tab, inthe Paragraph group, click Convert to SmartArt Graphic aUNIT VII Application of Digital Financial Services Introduction: ‘To develop awareness and.competence in the emerging information technology requirementsand solutions, necessary within the fast changing Financial Services Sector, inparticular those neededto meetitsunique, mission critical requirements. Why Savingsare needed? Ifyou have enough te pay for everything you need, why should yau worry about put ting anyaside each month? There area variety of reasons to begin saving money. Different people save for different reasons. Yaucan start by saving ten percentof your income each month, Here are some reasonsthat youmay consider saving your money. Emergencies Itisimportantto have an emergency fund setaside tacover unexpected expenses. This could cover ‘an unexpected car repair, your emergency appendectomy ora sudden jobloss. ideally your ‘emergency fund shouldbe about three to six months of yaur expenses. Future Needs By saving money yousave yourself worrying! It’s simple! The fact that youean growold knowing that you worked it out and you know what you willend upwith and you know thatyou will be comfortable is such an amazing feeling. Large expenses The bank won'tlend you money te buy a house unless you have a down payment, and you are not allowed to borrows down payment. You must have this money saved upor have someone give itto you—and not lenditte you. Your down payment needs to be at least 5% of the purchase price of the house, and thenthe bank will considerlending you the other95%. There are all sorts of other costs and fees thatyou need to pay when youbuya home, soyou will need an additional 5% just for those costs, Savingsiswhatwill openthe door ta owning a home. Drawbacks of keeping Cashat home Storingall your maney in cash at home justisn't safe. Your home could be burglarized, flood, or catch on fire. Inthe event af a burglary, most of those places youthoughtwere great for hiding your money will probably be found. If you bury yaurmoneyinthe back yard, the container you put itin could become damaged or start decomposing and destroy your maney.Less dramatically, youcould ply forgetabautall the places you've stashed money, orsomeone else who lives in ar household could find itandtake it Unsate keeping cashathome just isn't safe due to flood, or catch on fire oritcan be lost due to-some other reasons. 7Loss of Growth Opportunity ‘nce you have enough money you'll want tago beyond checking account and start saving and investing your money to optimizeyour future financial situation, You simply can'ttake advantage of the opportunity toearn money in the stork marketor eam interestondepositsifyou're notwiling to keep yourcash anywhere except yourmattress, No Credit Eligibility Hfmoneyiskept at home, thennocredit eligibilityisgained, Why Bank is needed? ‘Abank isa financial institution licensed as a receiver of deposits. There are twotypes of banks: commercial /retail banks andinvestment banks, Inmostcountries, banks are regulated by the ‘national government orcentral bank. Secure Money, Earn Interest,GetLoan ‘There are manyadvantagesto usinga bank, Whether you're using one for your personal, small, businessorcorparateneeds, your financial well-being depends an properly managing yaurfunds, Banks can help you dothis by providing savings and checking accounts that yield interest through bankrates, Another benefit that banks provide is their ability tofacilitate cashflow thraugh transfers, withdrawals and deposits, Inculeate habit of saving Theearlier you start asavingsaccount, the more money that savings account will accumulate over time. Yoursavings account willearninterest, which can cover the costs of keeping moneyin your account, because the fundsare then used.by institutionsto make loans toothercustamers. CDs are used forthe same purposes and offer even higher interest rates, however youare unable to withdraw without penalty foracertain amauntof time. Remittances using Cheque Demand Draft ‘Apart from acceptingdeposits and lendingmoney, Banks also carry out, on behalf of their customers the act of transfer af money - both domesticand foreign. - Fromone place ta anather. This activity is knawnas "remittance business". Banksissue Demand Drafts, Banker's Cheques, and Money Orders etc. for transferringthe money, Banks also have the Facility of quick transferof money also kno wn as Telegraphic Transferor Tele Cash Orders. In Remittance business, Bank'A’at a place's" accepts money fromcustomer'C’ and makes ‘arrangement or payment of the same amountof money to either the customer’ ar his "order" i. ‘person or entity, designated by'C'as the recipient, through either aBranch of Bank'A' or any other entity at place 'b’, Inreturn for havingrendered this service, the Banks chargea pre -decided sum knowns exehange or cammission orservice charge. This sum ean differ from bankto bank. ‘Thisaiso differs depending upon the mode of transferand the time available for effecting the transferof money. Faster the mode of transfer, higherthe charges. Avoid risk of chit funds Chitfundsare indigenous saving mechanism that is unorganized and run between friends, families and known persons. Chit funds are easy tojoinas thereis very little paperworktobe submittedand 78the entire setupis basedon trust. They have been around forover 1000 yearsand are presentin. othercountriestoo where they are popularly known as Rotating Savings and Credit Associations. Chitfund frauds have become a majorissue and happen forvarious reasons, suchas: + The foreman/fund manager disappears with the corpusamount, ‘+ Amembercoulddefaultin installment paymentor disappearafter winningthe firstbid. ‘+ The discount rate might be rigged and a desperate membermightend up payinga higher discount. Banking Products Banking Sector of fered innovativeproducts to redefine banking convenience, With expertise, you can rest assured thatyour wealth is protected and nurturedat the same time. ‘Types of Accounts and Deposit ‘Traditionally banks in India have fourtypes of deposit accounts, namely Current Accounts, Saving Banking Accounts, Recurring Deposits and, Fixed Deposits 1. SAVING ACCOUNT: «These deposits accountsare one of the most popular deposits forindividual accounts, ‘+ These accounts not anly provide Cheque facility but alsohave lot of flexibility for deposits and withdrawal of fundsfrom the account. ‘+ Most of the banks have rules forthe maximum number of withdrawalsina period andthe ‘maximumamount of withdrawal, but hardly any bank enforcesthese. ‘* However, banks have every right toenforce such restrictionsif it isfelt that the account is being misusedasa current account. 2. CURRENT ACCOUNT: * Current Accounts are basically meant forbusinessmenandare neverused forthe purpose of investment or savings. '* These deposits are the most liquid deposits and there are no limitsfor numberof transactions or the amount of transactionsina day. '* Most of the current account are opened in the namesof firm/ company accounts. ‘+ Cheque book facility is provided andthe account holdercan de posit alltypes of the Cheques and draftsin theirname or endorsed in their favorby third parties, + Nointerestis paid by banks on these accounts. On the otherhand, banks charges certain service charges, onsuch accounts. 3, RECURRING DEPOSIT ACCOUNT ‘* These are popularlyknown as RD accounts and are special kind of Term Depositsand are suitable forpeople who do not have lump sum amount of savings, butare ready to save asmall amount every month.‘+ Normally, such deposits earn interestonthe amount already deposited (through monthly installments) atthe same ratesas are applicable for Fixed Deposits /TermDeposits. These are best if you wish to create a fund for your child's education or marriage of your daughter orbuy a car withoutloans orsave for the future. © Under these type of deposits, the person has to usually deposit fixed amount of money every, ‘month (usually amninimum of Rs, 100/- p.m.). Any defauitinpaymentwithin the month attrads a smalt penalty. © However, some Banks besides offering a fixed installment RO, have also introduced aflexible / Variable RD, Under these flexibleRDs the person is allowed to depositevan higher amount of installments, with an upperlimit fixed forthe samee.g. 10 times of the minimum amount agreedupon, © Recurring Deposit accounts are normally allowed for maturities ranging from 6monthsto 120 months. A Passbook is usually issued wherein the person cangetthe entries forall the deposits made by him / herand the interestearned. ‘© incase instalmentis delayed, the interest payable inthe account will be reduced andsome nominal penalty charged for default in regular payments, Premature withdrawalof accumulated ‘amount permitted is usually allowed (however, penslty may be imposed for eatly withdrawal). These accounts can be openedin single orjoint names, Nomination faclityis also available The RD interest rates paid by banksin India are usually the same as payable on Fixed Deposits, except when specificrates oni FDs are paid far particular numberdf dayse 500 daiys, 55 days, 1111 days etc. |.e. these arenot endingina quarter. 4. FIXED GEPOSITS ACCOUNT: All Banks in india (inel uding SBI, PNB, BOB, Bot, Canara Bank, ICICIBank, Yes Bank etc.) Offerfixed deposits schemes witha wide range of tenuresfor periods rom 7 daysto 10 years, These are also popularly known as FD accounts, However, income other countries theseare known as “Term Deposits" orevencalled "Bond". The term "fixed" in Fixed Deposits (FD) denotes the period of maturity of tenor, Therefore, the depositors are supposed to continue such Fixed Deposits forthe length af time forwhich the depositordecidestokeep the moneywith thebank. ‘© However, incase of need, the depositor canask or clasing(orbreaking) the fixedileposit prematurely by payinga penalty (usually of 1%, ut some banks either chargellessor no penalty). + Some banks introduced variable interest fixed deposits, The rate ofinterest on such deposits keepson varying with the prevalent market ratesi.e. itwillgo up if market interest rates goes and it will come dawn if the market rates fall. However, suchtype of fixed deposits has not beenpopulartilidate. The rate of interest for Fixed Deposits differs frambankto bank {unlike earlier when the some were regulated by RB! and al! hanks used to have the same interest rate structure, Usually a bank FD is paidin lump surh onthe date of maturity. Besides above four traditional accounts, there are some other accounts withsame features but a fewdifferentfeatures.‘Types of Loan and Overdrafts ‘A.bank overdraft isa limiton borrowing on a bank current account. With an overdraft the amount of borrowing may vary on adaily basis, ‘Abank loan is a fixed amount fora fixed term with reguler fixed repayments. Theinterestonaloan tends to be lowerthan an overdraft. Fillingupof Cheques, Demand Drafts A Cheque is an important bank dacument which is used to make paymentsand exchange funds between peopleandtwouifferent accounts. A Cheque book is issued by abankto a valid account holder. ACheque book usually contains 5, 1007 20 leaves. Cheque books these daysalready have the important details, such as the name of the @ank, branch address, IFSCcode, Account holder's name and Account Number printed on eachleaf. Thishas made filling owtaCheque, even more Follow these steps to correctly fillupacheque. 1. Fillin the ate, This iscalled the date of issue, Mention the correct datein the top right column, It isday, month and yearinfigures. Acheque once issuedisvalid forthe next 3months. 2. Write the name of the person/company (Payee) youwant to address the cheque to. Make sure youspell the namein theesame way as itappearson the beneficiarysaccount. 3. Itisadvisable to strike out ‘orbearer’at the endof the ‘payee’ line. Thiswill ensure thatthe cheques encashedonly to the person itisaddressed to and notto just anyone who holdsit. 4, Write the amount to be paidin words along the ‘Rupees’ column. Strike alineafteryou fill inthe ‘dmountinorderto preventany alteration, 5. Rewrite the exactsame amount in figures withinthe adjacent box. 6 Put your signature above yourname toautharize the transaction. This should be the same or dlosest likeness of the signature specimen you have submitted to yourbank while opening your aecount, 7. Sometimes, inordertosecure a cheque, you may mark outtwo parallel lines with “Account Payee only’ written inthe middle, on the top left corneraf the cheque, This iscalled ‘Cressing outa Cheque’. This means your cheque will be paid into the account of the person being paid and not to the person holding the cheque for paymentat the counter. To cancel a cheque mark ‘CANCEL’ in bold acrass the face of the cheque andif possible, inform the bank officials ormake anote of the cheque number and record it as cancelled Acorrectly filled out cheque would looklike theimage bélow. aL| DETAILS ON A CHEQUE scr 2 a | FSCCODE AccbuNT CHEQUE micHcoD! ACCOUNT i SGMBER SUMBER MICREOPE |. CIBES NAME Demand Draft ‘Ademand draftor "DD" is an instrument most banks in Indiause foreffecting transfer af money. It isa Negotiable Instrument. To buy a "DD" froma Bank, you are required tofillan app lication form which asks the follawing information: Typeof instrument needed Nameof the recipient Nameof the sender ‘Amountto be transferred Place where the transferred moneys tobe paid Mode in which money isto be paid/.e.in cash or through a Bank Account Mode inwhich youwill pay moneytothe Bank i.e. in cash or by debit toyour account Documents for Opening Accounts Know your Customer (YC) Know your custamer(KYC)isthe process af a business verifying the identity of itsclients, The termis alsousedte referto the bank regulation which governs theseactivities. Knaw your customer processesare also employed by companies ofall sizes for the purpose of ensuring their proposed agents, consultants, or distributorsare ant bribery compliant. Banks usually frame theirkYC policies incorporating the following fourkeyelements: ‘When KYCis required? KYChhas to be followed by every financial institute while dealing with customers. KYC procedure needs to be adhered to bya customerduring following instances: + While openinganaccountina bank a+ While applying fora credit card or loan While openingasubsequent account Openinga locker facility ‘+ When thereare notenough documents with the bankinexi When thereare changes insignatories, beneficial owners, etc ing account ‘© When the bank feelsitnecessary toobtain additional information fromexisting customers based on canductof the account * While investing in amutual fund ‘© Financial institutes may ask for amandatory KYC process in other instances too ‘According to the KYC policy, a “Customer” is- ‘A personor entity that maintains an accountand/or has a business relationship withthe bank One ‘on whose behalf the account is maintained (i.e. the beneficial owner); Benoficiariesof transactions conducted by professional intermediaries, suchas Stack Brokers, Chartered Accountants, Solicitors etc. as permittedunderthe law, and any person orentity connected witha financial transaction which can pose significant reputational orotherrisks tothe bank, say, a wire transfer orissue of a highvalue demanddraftas a single transaction. Photo ID Proof, Address Proof Identity Proaf (any one of the following) |. Passport U.PAN Card ll. Voter'sidentity Card IV.Drivinglicense V. Ration Card Vi.Identity card (subject to the bank's satisfaction) ‘Address Proof (any one of the following) 1. Utility bill 11.Bank account statement received by mail /eourier alongwith signature verification by the Banker ora cheque drawnon that account fora minimum amount as specified by the Bank, deposited into the account U).Ration card iv, Letter from employer (subjectto satisfactionof the bank) 3Ang Currency ‘The Rupee, or more specifically the Indian Rupee (symbol: &;SO cade:INR) (Unicode +2089) isthe official currency of the Republicof India. The issuance of the currency is controlled by the Reserve Bankof india. The modern rupee is theoretically subdivided into 100 paisa(singular paisa), though asof 2011 only 50 paisacoins are legat tender. Banknotesincirculation comein denominations of 81, 82, 5, "10, 820, %50, €100, 2500 and 2000, Rupee cains are available in denominations of 81, ¥2, 85, 810, ‘The Indian rupee symbol *' (officially adopted in 2010) is derived fromthe Devanagari consonant "2) "ra). The firstseries of coins with the rupee symbol was launched on July 2011. Banking Service Delivery Channels -1 Bank Branch ‘Abranch, banking center or financial center is aretail location where abank, creditunion, or ‘other financial institution offersa wide array of face-to-face and automated services to its customers. =a" atm ‘Ar automatedteller machine (ATM) isan electranicbanking outlet, whichallows customers to complete basictransactions without the aidof a branch representative orteller. ‘There are two primary typesof automated teller machines (ATM). The basicunitsallow the customerto only withdraw cash and receive a report of the account's balance. The more complex machines will accept deposits, facilitate credit card payments.and report account information. To access the advanced features of the complex units, you will usually needto bea memberof the bankthat aperates the machine.Bank Mitra with Micro ATM. Micro-ATMs are biometricauthentication enabled hand-held device. In orderto make the ATMs viable at rural/semi-urban centers, lowcost Micro- ATMs would be deployed at each of the Bank Mitra location. This wauldenablea person to instantly deposit or withdraw funds regardless of the bankassociated witha particular Bank Mitra/Business Conespandent. Thisdevice will bebasedona ‘mobile phone connection and would be made available to every Bank Mitra/Business Correspentient. Customers would have to get theiridentityauthenticated and withdraw orput moneyinto their bank accounts, This money will come from the cash drawer of the Bank Mitra/Business Correspondent. Essentially, Bank Mitra will aet as bank for the customers and all theyneedto do isverify the authenticity of customer using customer'sUID. The basictransaction types to be supported by micro ATM are Deposit, Withdrawal, Fund transfer and Balance enquiry, Micro-ATM offers one of the most promisingoptionsfor providing financial services tothe unbanked population. Micra-ATMs would have various options of authentication like biometric, PIN basedete. and it wouldalso beused.as mabile ATMs to enable transactions near the daorstep of the customers, Point of Sales (POS) The point of sate (POS) isthe time and place where a retail transactions completed. itis the paint at which a customer makes a paymentto the merchant in exchange for goods or after provisionof a service, At the point of sale, the merchant would prepare an invoice forthe custamer (which maybe a cash register printout) or otherwise calculate the ammount owed bythe customer and provide ‘options forthe customerta make payment, Afterrecei ving payment, the merchant will alsa normallyissue a receiptfor the transaction. Usually the receiptisprinted, butitisincreasingly being dispensed electronically, The POSin various retail situations would use customized hardware and 85software tailoredtotheir particular requirements, Retailers may utilize weighing scales, scanners, electronicand manual cash registers, EFTPOS terminals, touch screensandavariety af other hardware and software available. For example, agroceryor candy store may use.a scaleat the point of sale, whilea barand restaurant may use software to customize the itemor service sold whena customer has a meator drink request. Banking Service DeliveryChannels-ti Internet Banking. Internet banking (or E-banking) means any user with apersonal computeranda browsercan get connected ta hisbank website to perform any af the virtual bankingfunctions. in internet banking system the bank has a centralized database that is web-enabled. Allthe services that the bankhas permittedn the internet are displayed in menu, Any service con beselected and furtherinteraction, isdictatedby the nature of service. Real Time Gross Settlement (RTGS): The fullformof RTGS is "Real Time GrassSettlement". RTGS can be defined as “asthe continuous {real-time} settlement of funds transfers individually onan order by order basis (without netting") Here the wards ‘Real Time’ refers to the pracess of instructions that aré executedat the timethey ‘are received, ratherthan atsome later time. On the otherhand "Gross Settlement" means the settlement of funds transferinstructions accursindivid ually (on an instruction by instruction basis). ‘The RTGS service window farcustomer’s transactions s available from8.00 hoursto 16.30 hours {Monday through Friday and alsaon working. ‘National Electronic Fund Transfer (NEFT): “The full form of NEFTis "National Electronic Funds Transfer(NEFT). The NEFTis a nationwide paymentsystem facilitating one-to-one funds transfer. Under this system, individuals, firms and corporates can electronically transferfunds from any bank branch to any individual, firmor corporate hawing an account with any otherbank branch in the country participating in the system. NEFT operates in hourly batches - there are twelve settlements from 8am to 7 pm (Monday through: Friday and aiso on working Saturdays i.e. Saturdays other than 2nd & 4th Saturdays).RTGS Vs NEFT: RTGS NeFT Minimum Amount: RS2 lakhs. No mi urn imi Maximum Amaunt: No upperceiling Noupperceiting What are the processing service Charges for RTGS and NEFT transactions? RTGS: {a] nward Transactions: Free, nocharge to be levied; {b) Outward Transactions: Rs 2lakh to Rs 5 tak? lakh - not exceeding Rs 5S transactions; Not exceedingRs 30 per transaction; Above Rs 5 NEFT: 3) Inward transactionsat destination bank branches (for credit to beneficiary accounts) Free, no charges to be levied frombeneficiaries b)_Qutward transactions at originating bank branches ~chargesapplicable forthe remitter * FortransactionsuptoRs 10,000 : not exceeding Rs2.50(+ Service Tax) ‘© Fortransactionsabove Rs 10,000 up to Rs 1 lakh=not exceeding Rs 5 (+ Service Tax) + Fortransactionsabove Rs 1 lakh and up to Rs 2 lakhs: not exceeding Rs 15(+ Service Tax) * Fortransactionsabove Rs ?2 lakhs:notexceeding Rs 25 (+ Service Tax) Insurance Necessityof Insurance Human beings, hisfamily and properties are always exposed todifferent kindsof risks. Riskinvolve the losses. Insuranceisa tool which reduces the cost ofloss or effect of loss caused by variety of risk, Itaccumulates funds to mectindividual losses, Itisnat device to prevent unwanted event of happening orcause of loss but protects them against that loss by compensating which aslost. The role and importance of insurance are discussed as follows: 1, Insurance provides security 2. Insurance reduces business riskorlosses Life insurance encourages saving insurance accelerates the economicgrowth of the country 5. Insurance makes securityand welfare of employees. & Insurance provides credit facilities aw fe insurance and Non-life Insurance: The term insurance canbe understoadas an arrangement, inwhichthe insurer cammitsto provide compensation forloss, damage, death, caused to the insuredin return for the paymentof the premium. aLife Insurance: The insurance plan which covers the life-risk of the insuredis called lifeinsurance. Life Insurances a Policy that people buy from Insurance Company, which canbe the hasis af protection and financial stability of the family after his death, Non-life Insurance: Non-Life insurance is all other forms of insurance namely Health or mediclaim, where death benefit (snot covered, motorinsurance, travel insurance theft insurance, home insurance, etc. For example: Motor Insurance means insuring the financial riskinvolved while operating the car. Insurani dustry in India ‘Nan-Life Insurance/General Life Insurance iaiad Motor Fire Health ‘Marine Insurance Insurance Insurance Insurance Various Schemes: Pradhan Mantri Jan-Dhan Yojana (PMIDY) Pradhan Mantti Jan-Dhan Yojana (PMIDY) is National Mission forFinancial Inclusion to ensure access to financial services, namely, Banking/ Savings & Deposit Accounts, Remittance, Credit, Insurance, Pension in anaffordable manner. ‘Accountcan beopened in any bank branch or Business Correspondent (Bank Mitr) outtet. Accounts: openedunder PMIDY are beingopened with Zerobalance. However, if he account holder wishes to get cheque book, he/she will have tofulfill minimum balance criteria, ‘The scheme will ensure financialaccessto everyone who was notable toget benefits of many other finance related government schemes. These financialservicesinclude Banking/ Savings & Deposit Accounts, Remittance, Credit, Insurance, Pension which will be made available tall thecitizensin easy and affardatle mode. ‘Accardingtothe data issued by finance ministry, till eptember 2014 around 40 million (4crores) bank accounts have been opened under the Pradhan Mantri Jan Dhan Yojana since the scheme launched, However there was another financial scheme (Swabhimaan) launched earlier in which the target of ‘opening the bank accounts was for villages anly. But in Pradhan Mantei Jan Dhan Yojanatthe entire dual ire spective of their area (rural or urban) can get bank account without depositing anyamount if they fulfill other eligibility criteria. This scheme is very beneficial for the rural population where banking services and other financial institution are rarely available. Under the Jan Dhan Yojana anyone who is India citizen above age of 10 years and does not have a bank account, can open the account with zera balance. Account canbe opened inany bank branch or Business Correspondent (Bank Mitra) outlet, specially designed for the purpose of opening the accounts under this scheme, The scheme also provides facility of accidental insurance cover up to rupeesone lac without any charge for the account holder. ‘The account holders under the Jan Dhan Yojana will be givena RuPay debit card which canbe used at all ATMs for cash withdrawal and at mostof the retail cutlets for making transaction for purchases, Social Security Schemes Pradhan Mantri Suraksha Bima Yojana (PMSBY) Pradhan Mantri Suraksha Bima Yojanais a government-backed accident insurancescheme in india Itwas originally mentionedin the 2015 Budget speech by Finance Minister Arun4aitheyin February 2015. it wae formally launched by Prime Minister Narendra Modion 9 May in Kolkata. As of May 2015, only 20% of India's population hasany kind af insurance, thisscheme aims to increase the number, Pradhan Mantri Suraksha Bima Yojanais available to people between 1B and 70 yearsof age with bankaccounts. It hasan annual premium of 812 (18¢ US) excludingservice tax, whichis about 14% of the premium. The amount will be automatically debited from the account. Incase of accidentaldeathor full disability, the paymentto the nominee will be €2lakh (\iS32,900) and in case of partial Permanent disability lakh (US$1,500), Full disabilityhas been defined as lossof usein both eyes, handsand feet.Partial Permanent disability has been definedas loss of use in ane eye, handor foot. ‘This scheme willbe linked to the bank accounts apened under the Pradhan Mantri Jan Dhan Yojana ‘scheme, Most of these account had zers balance initially. The government aims toreduce the ‘numberof such zero balance accounts by using thisand related schemes. Pradhan Mantri Jeevan lyati Bima Yojana [PMUBY) ‘The scheme will be aone year cover, renewablefrom yearto year, Insurance Scheme offering life insurance cover for death due to any reason. The scheme would be offered / administered through UC and ather Life Insurance companies willing to offer the product on similartermsvwith necessary ‘approvals and tie ups with Banks for this purpose. Participating banks will be fre eto engageany such life insurance company forimplementing the schemefortheirsubseribers, ‘Scope of coverage: All savings bank accaunt holders imthe age 18 to 50 yearsin participating banks willbe entitled tojoin. Incase of multiple saving bank accounts held by an individust inane or different banks, the person would be eligible to join the scheme through one savings bankaccount orily. Aadhar would be the primary YC forthe batik account, Enrolment periad:Initially on launch for the cover periad ‘Ist June 2015 to 31st May 2016, subscribers will be required to-enroll and give theirauito -debit consentby 31st May 2015. Late enrolimentfor prospective cover willbe possibleuptodist August 2015, whichmay be extended by Govt. of indiaior anotherthree months, i.e. up to30th of November, 2015. Those joining. subsequently maybe able todaso with paymentof full annual premium forprospective-cover, wit submission of aself-certificate of good healthin the prescribed proforma: Enrolment Modality: The cover shallibe for the one year periad stretching from 1stJune to 3st May for which aption to join pay by auto-debit from the designated savings bankaccountanthe prescribed forms will be required tobe given by 31st May of every year, with the exception asabove for theinitial year. Delayed enrollment with payment of full annual premium for prospective caver may be possible with submission of aself-certificateof good health, Individuals rho exit the scheme at any point may re-join the scheme in future years by submittinga declaration of good healthin the prescribed proforma. In future years, new entrants intathe eligible category or currently eligible individuals whadidinot ioinearlierordiscontinued theirsubscription shali be able tajoin while the schemeiscantinuing, subject to submission of self-certificate of good health. Benefits: Rs.2lakhs is payable on member'sdeathdueto any reason Premium: Rs.330/-perannum permember. The premium will be deducted fromthe account holder's savings bank account through ‘auto debit’ facility in one installment, as perthe option given, onor bofore 31st May of each annual coverage period underthe scheme. Delayed enraliment for prospective cover after 31st May willbe possible with full payment of annual premium and submistion of aself-certificate of good health. The premium would be reviewed basedon annualclaims experience, Hawever, barring unforeseen adverse outcomesof extremenature, efforts would be made to ensure that there is no upward revision of premiumin the firstthree years, Atal Pension Yojana (APY) “As our young population ages, itis also going to be pension -less. this propose towork towards creatinga universal social security system forall Indians thatwill ensure that no Indianeitizen will haveto worry about illness, accidents or penury in cldage”, In keeping with thisideal, aNational Pension Scheme, the Atal Pension Yojanawill be effectivefrom June 2015, The scheme intends to bring pension bene fits toallow people of the unorganized sectorto enjoy social security with minimum contribution per month, People whoworkinthe private sectororemployed in occupations that do notgive them the benefit of pension canapply forthe scheme. They can opt for afixed pension of INR 1,000 or 2,000 or 3,000 ‘0 4,000 oF 5,000 on attaining the age of 60. The amountof contribution and the individual's age will determine the pension. Upon the contributor’s death, the spouse of the contributor canclaim the pensionandafterthe spouse’sdeath the nominee will be returned the corpusaccrued. The amount collected underthe scheme isto be managed by Pension Funds.as perthe investment pattem specified by the Government. Individualapplicants willhave no choice of pension funds or investmentallocation. Pradhan Mantri Mudra Yojana (PMMY) Pradhan Mantri Mudra Yojana (SUTeaa Ae Arata (underthe Micro Units Development and Refinance Agency (MUDRA) dankis.a new institution being setup by Government af Indiafor development and refinancing activitiesrelating tornicro units. twasannouncedby the Finance Minister while presenting the Union Budget for FY2016. The purpose of MUDRA is to provide fundingtothe non-corporate small business sector. Loans worth about Rs 1 lakh crore have been sanctioned to small entrepreneurs under the Pradhan Mantri MUDRA Yojana, Prime Minister Narendra Modi said today, emphasizing thatthe government wants youth tobe job creatorsand nat job seekers. Under thescheme, Pradhan Mantri Mudra Yojana three categories of interventionshas beennamed whichineludes Shishu:- Loan up to %50,000 (US$740) Kishore:- Laan ranging from %50,000 (USS740) to €5 lakh (US$7,400) Tarun: Loan above *S lakh (US$7,400) and below €10lakh (USS15,000) 91‘These three categories will signify the growth, development and fundingneeds of the beneficiaries as well as itwill assure the loan amount tobe allotted by Micra Units Developmentand Refinance Agency dank. ‘National Pension Scheme National Pension System (NPS) isa voluntary, defined contribution retirament savings scheme. The NNPS has been designed to enable systematicsavings during the subscriber's workinglife.Itis an attempt towards finding a sustainable solution to provide adequate retirementincome toevery citizen of tndia. How NPS Works? Under the NPS, an individual's savingsis pooled in’ pension fund. ThesefUndsateinvestedby Pension Fund Regulatoryand Development Authority (PFRDA) regulated professional fund managers 4s per the appraved investment guidelines in the diversified portfolios comprising of government bonds, bills, corporate debentures and shares. These contributions would growandaccumulate over the years, depending on the returnseamedonthe investmentmade. At the timeot anormat exit from NPS, the subscribers may use the accumulated pension wealthunder the scheme eitherto purchase a life annuity from aPFRDA empanelediife insurance company or withdraw part of the accumulated pension wealth as lump-sum, iftheychoase to do so. Public Provident Fund (PPF) Scheme ‘The PublicProvident Fundisasavings-cum-tar-saving instrument ifIndia, introduced by the National Savings institute of the Ministry of Finance in 1968,The almof the scheme is to mobilize ‘small savings by offering aninwestment with reasonable returns combined with income taxbenefits, Individuals veho are residents of India aie eligible to open their account under the Public Pravident Fund, Bank on your mobile ‘Mobi Mobile bankingisa service provided bya bank or other financial institution thatallowsits customers to.conduct.a range of financial transactions remotely using a mobile device suchas mobile phone or tablet, and using software, usually called.an app, provided by the financiali stitution forthe purpose. Mobile bankingis usually available on @ 24-hour basis. Some financial institutions have rebtrictions.onwhich accounts may be accessed through mobile banking, as well as alimiton the amaunt that cart be transacted. ‘Mobile Wallets Mobile payment, also referred to.as mobile maney, mobile money transfer, and mobile wallet generally refer to payment services operated under financial regulation and performed from or via a mobile device. Instead of paying with cash, cheque, or credit cards, a consumer can use a mobile phone to pay for a wide range of services and digital or hard goods. 92